Correlation Between SBI Life and Power Finance
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By analyzing existing cross correlation between SBI Life Insurance and Power Finance, you can compare the effects of market volatilities on SBI Life and Power Finance and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SBI Life with a short position of Power Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SBI Life and Power Finance.
Diversification Opportunities for SBI Life and Power Finance
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between SBI and Power is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SBI Life Insurance and Power Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Finance and SBI Life is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SBI Life Insurance are associated (or correlated) with Power Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Finance has no effect on the direction of SBI Life i.e., SBI Life and Power Finance go up and down completely randomly.
Pair Corralation between SBI Life and Power Finance
Assuming the 90 days trading horizon SBI Life Insurance is expected to generate 0.57 times more return on investment than Power Finance. However, SBI Life Insurance is 1.75 times less risky than Power Finance. It trades about 0.04 of its potential returns per unit of risk. Power Finance is currently generating about -0.2 per unit of risk. If you would invest 140,385 in SBI Life Insurance on October 31, 2024 and sell it today you would earn a total of 1,565 from holding SBI Life Insurance or generate 1.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SBI Life Insurance vs. Power Finance
Performance |
| Timeline |
| SBI Life Insurance |
| Power Finance |
SBI Life and Power Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SBI Life and Power Finance
The main advantage of trading using opposite SBI Life and Power Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SBI Life position performs unexpectedly, Power Finance can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Power Finance will offset losses from the drop in Power Finance's long position.| SBI Life vs. Iris Clothings Limited | SBI Life vs. ILFS Investment Managers | SBI Life vs. Welspun Investments and | SBI Life vs. Ankit Metal Power |
| Power Finance vs. BF Utilities Limited | Power Finance vs. Praxis Home Retail | Power Finance vs. Bikaji Foods International | Power Finance vs. Mangalam Drugs And |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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